What is Beth's maximum allowable deduction for the following contributions to qualified public charities during the current year if her adjusted gross income is $90,000? $\begin{array}{lrr}
\underline{\text {Stock Contributions}}&
\underline{\text {Basis }}&\underline{\text {Fair Market Value}}\
\text { Markum stock acquired in } 1997 & \$ 8,000 & \$ 16,000 \
\text { Dotcom stock acquired in } 1999 & \$ 7,000 & \$ 14,000 \
\text { Ford stock acquired in 2001 } & \$ 1,500 & \$ 3,000
\end{array}$

Question

What is Beth's maximum allowable deduction for the following contributions to qualified public charities during the current year if her adjusted gross income is $90,000? $\begin{array}{lrr}
\underline{\text {Stock Contributions}}&
\underline{\text {Basis }}&\underline{\text {Fair Market Value}}\ 
\text { Markum stock acquired in } 1997 & \$ 8,000 & \$ 16,000 \
\text { Dotcom stock acquired in } 1999 & \$ 7,000 & \$ 14,000 \
\text { Ford stock acquired in 2001 } & \$ 1,500 & \$ 3,000
\end{array}$

Quizplus · Accepted Answer

Beth's maximum allowable deduction for contributions to qualified public charities is limited to 30% of her adjusted gross income (AGI) when donating appreciated capital gains property (like stocks) held long-term. Her AGI is $90,000, so her limit for these contributions is 30% of $90,000, which equals $27,000.

What Is Beth's Maximum Allowable Deduction for the Following Contributions